Liquor Liability and the Company Holiday Party
Contact:
Karen Robison
(717) 795-9100, Ext. 606
MECHANICSBURG, Pa. – ‘Tis the season for company holiday parties – and the hidden liability that comes with them. For the 70% of companies that mix alcohol with their festivities, proper insurance is essential.
“When you host a company party – whether it’s at the office, your home or a rented space – you may be liable if a guest drinks, drives and causes an accident,” said G. Kevin Nemith, president of Insurance Agent & Brokers Service Group Inc.
In Delaware and Maryland, liquor liability is determined by the courts. Pennsylvania is among 42 states that have a dram shop law and recognize dram shop liability.
“In Delaware and Maryland liquor liability varies drastically,” said Nemith. “Pennsylvania’s dram shop law applies to private events, and oftentimes parties are not covered by business or personal insurance policies.”
Insurance Agents & Brokers Service Group Inc. offers these tips for protecting your company – and yourself – from alcohol-related liability.
Review your policy
Before hosting a party, review your commercial or personal insurance policy, depending upon the location. If necessary, purchase an umbrella policy that covers host liquor liability. Umbrella policies are relatively inexpensive – for example, a yearlong $1 million personal policy could cost $150.
Change the venue
Consider moving the party to a locale with a liquor license. Restaurants and bars that serve alcohol are required to maintain appropriate liability coverage. To rent a facility, anticipate signing an insured contract – one with a hold-harmless agreement.
Host smartly
Provide plenty of food and non-alcoholic drinks, and stop serving alcohol well before the party ends. Flag visibly intoxicated guests, and call taxis when necessary.
To learn more about liquor liability and umbrella policies, contact your insurance agent. Or contact IA&B at (800) 998-9644 or iab@iabgroup.com to be connected with a local, independent insurance agent.
- ### -
About Insurance Agents & Brokers
The Insurance Agents & Brokers Service Group is the management arm of the Delaware Association of Insurance Agents & Brokers Inc., the Insurance Agents & Brokers of Maryland Inc. and the Insurance Agents & Brokers of Pennsylvania Inc. The Mechanicsburg, Pa.-based trade association provides professional development, advocacy and industry information to its nearly 1,600 member agencies.
The Insurance Agents & Brokers Service Group is affiliated with the National Association of Professional Insurance Agents and the Independent Insurance Agents & Brokers of America.
To learn more, visit www.iabgroup.com.
